New Delhi: Amidst the ongoing family feud over the terms of the 12-year-old Kirloskar family. a settlement refuse to die Supreme court on Thursday asked warring siblings, their family members and the companies under their wing to resolve disputes if they Mediation Under former Supreme Court judge Indu Malhotra, it has to cover all issues.
“There can’t be a half-measure. One can’t say or that company will not be a party to arbitration. All companies under all brothers must be a party to arbitration. If all parties agree to it, well and good. If not , then we will pass an interim order,” the Chief Justice bench said. NV Ramana and Justices AS Bopanna and Hema Kohli.
This observation came after Sanjay KirloskarAM Singhvi, the lawyer of K.K., pointed out that his other brothers have violated the Deed of Family Settlement (DFS) to acquire companies to compete with their core business – manufacturing of pumps. “Now, they say that since those companies were not part of the DFS, they would not be parties to the arbitration. It would have no consequence,” he said.
Senior advocates Shyam Divan and Ritin Rai, appearing for the companies and other brothers, told the court that those three companies are listed companies with independent directors and hence they cannot be compelled to engage in arbitration without proper decision of the board. . However, he said that all the brothers have agreed to mediate under Justice Malhotra.
The bench put its foot down and said, “Whether there is any nexus between the brothers and those three companies can be seen by the arbitrator. For a comprehensive solution all the companies will have to engage in arbitration. Let the arbitrator decide whether to arbitrate.” And who are the parties required for settlement. Otherwise it would be incomplete arbitration.” Rai said he would respond after taking instructions from his customers. SC posted this matter the hearing on 1st December
“There can’t be a half-measure. One can’t say or that company will not be a party to arbitration. All companies under all brothers must be a party to arbitration. If all parties agree to it, well and good. If not , then we will pass an interim order,” the Chief Justice bench said. NV Ramana and Justices AS Bopanna and Hema Kohli.
This observation came after Sanjay KirloskarAM Singhvi, the lawyer of K.K., pointed out that his other brothers have violated the Deed of Family Settlement (DFS) to acquire companies to compete with their core business – manufacturing of pumps. “Now, they say that since those companies were not part of the DFS, they would not be parties to the arbitration. It would have no consequence,” he said.
Senior advocates Shyam Divan and Ritin Rai, appearing for the companies and other brothers, told the court that those three companies are listed companies with independent directors and hence they cannot be compelled to engage in arbitration without proper decision of the board. . However, he said that all the brothers have agreed to mediate under Justice Malhotra.
The bench put its foot down and said, “Whether there is any nexus between the brothers and those three companies can be seen by the arbitrator. For a comprehensive solution all the companies will have to engage in arbitration. Let the arbitrator decide whether to arbitrate.” And who are the parties required for settlement. Otherwise it would be incomplete arbitration.” Rai said he would respond after taking instructions from his customers. SC posted this matter the hearing on 1st December
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